SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
USA - NASDAQ:SHLS - US82489W1071 - Common Stock
7.24 USD
-0.05 (-0.69%)
SHLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. While SHLS has a great health rating, its profitability is only average at the moment. SHLS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SHLS was profitable.
SHLS had a positive operating cash flow in the past year.
In the past 5 years SHLS has always been profitable.
SHLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHLS has a Return On Assets of 2.66%. This is in the better half of the industry: SHLS outperforms 77.17% of its industry peers.
SHLS has a Return On Equity of 3.67%. This is in the better half of the industry: SHLS outperforms 70.65% of its industry peers.
With a decent Return On Invested Capital value of 4.09%, SHLS is doing good in the industry, outperforming 70.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHLS is below the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROIC | 4.09% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
1.3 Margins
SHLS has a Profit Margin of 5.28%. This is in the better half of the industry: SHLS outperforms 79.35% of its industry peers.
SHLS's Profit Margin has declined in the last couple of years.
SHLS has a Operating Margin of 10.32%. This is in the better half of the industry: SHLS outperforms 79.35% of its industry peers.
In the last couple of years the Operating Margin of SHLS has declined.
SHLS has a Gross Margin of 33.70%. This is in the better half of the industry: SHLS outperforms 76.09% of its industry peers.
SHLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% |
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHLS is destroying value.
The number of shares outstanding for SHLS has been reduced compared to 1 year ago.
Compared to 5 years ago, SHLS has about the same amount of shares outstanding.
Compared to 1 year ago, SHLS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.37 indicates that SHLS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.37, SHLS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of SHLS is 10.90, which is on the high side as it means it would take SHLS, 10.90 years of fcf income to pay off all of its debts.
SHLS has a Debt to FCF ratio of 10.90. This is in the better half of the industry: SHLS outperforms 67.39% of its industry peers.
SHLS has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
SHLS's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. SHLS outperforms 61.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Altman-Z | 4.37 |
ROIC/WACC0.48
WACC8.59%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SHLS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.34, SHLS is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that SHLS should not have too much problems paying its short term obligations.
SHLS's Quick ratio of 1.64 is fine compared to the rest of the industry. SHLS outperforms 64.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for SHLS have decreased strongly by -40.82% in the last year.
The Earnings Per Share has been decreasing by -0.95% on average over the past years.
The Revenue for SHLS has decreased by -11.95% in the past year. This is quite bad
The Revenue has been growing by 22.54% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
3.2 Future
The Earnings Per Share is expected to grow by 14.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.63% on average over the next years. This is quite good.
EPS Next Y21.88%
EPS Next 2Y21.57%
EPS Next 3Y18.38%
EPS Next 5Y14.97%
Revenue Next Year17.29%
Revenue Next 2Y15.89%
Revenue Next 3Y13.63%
Revenue Next 5Y11.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.97, the valuation of SHLS can be described as rather expensive.
79.35% of the companies in the same industry are more expensive than SHLS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SHLS to the average of the S&P500 Index (27.38), we can say SHLS is valued inline with the index average.
With a Price/Forward Earnings ratio of 14.85, SHLS is valued correctly.
Based on the Price/Forward Earnings ratio, SHLS is valued cheaper than 88.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. SHLS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.97 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHLS indicates a somewhat cheap valuation: SHLS is cheaper than 72.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SHLS is valued a bit cheaper than the industry average as 68.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.26 | ||
| EV/EBITDA | 24.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SHLS may justify a higher PE ratio.
SHLS's earnings are expected to grow with 18.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y21.57%
EPS Next 3Y18.38%
5. Dividend
5.1 Amount
SHLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SHLS (9/22/2025, 11:21:05 AM)
7.24
-0.05 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners117.86%
Inst Owner Change6.76%
Ins Owners0.81%
Ins Owner Change5.02%
Market Cap1.21B
Analysts79.23
Price Target7.55 (4.28%)
Short Float %12.46%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.47%
Min EPS beat(2)-23.86%
Max EPS beat(2)18.92%
EPS beat(4)1
Avg EPS beat(4)-10.95%
Min EPS beat(4)-23.86%
Max EPS beat(4)18.92%
EPS beat(8)4
Avg EPS beat(8)-1.9%
EPS beat(12)8
Avg EPS beat(12)10.2%
EPS beat(16)11
Avg EPS beat(16)4.34%
Revenue beat(2)2
Avg Revenue beat(2)5%
Min Revenue beat(2)3.87%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)1.47%
Max Revenue beat(4)6.14%
Revenue beat(8)5
Avg Revenue beat(8)1.19%
Revenue beat(12)9
Avg Revenue beat(12)2.72%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)6.64%
PT rev (3m)16.22%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)11.09%
EPS NY rev (1m)0%
EPS NY rev (3m)8.7%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)10.58%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.97 | ||
| Fwd PE | 14.85 | ||
| P/S | 3.03 | ||
| P/FCF | 100.26 | ||
| P/OCF | 38.56 | ||
| P/B | 2.11 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 24.77 |
EPS(TTM)0.29
EY4.01%
EPS(NY)0.49
Fwd EY6.74%
FCF(TTM)0.07
FCFY1%
OCF(TTM)0.19
OCFY2.59%
SpS2.39
BVpS3.44
TBVpS2.8
PEG (NY)1.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROCE | 5.79% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.85% | ||
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% | ||
| FCFM | 3.02% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexcg growth 3Y-14.52%
ROICexcg growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 147.99% | ||
| Cap/Sales | 4.83% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 57.78% | ||
| Profit Quality | 57.21% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.37 |
F-Score7
WACC8.59%
ROIC/WACC0.48
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.82%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%0%
EPS Next Y21.88%
EPS Next 2Y21.57%
EPS Next 3Y18.38%
EPS Next 5Y14.97%
Revenue 1Y (TTM)-11.95%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%11.68%
Revenue Next Year17.29%
Revenue Next 2Y15.89%
Revenue Next 3Y13.63%
Revenue Next 5Y11.63%
EBIT growth 1Y-19.67%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year78.1%
EBIT Next 3Y34.66%
EBIT Next 5Y24%
FCF growth 1Y-84.63%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y-62.6%
OCF growth 3YN/A
OCF growth 5Y17.31%